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CFP Board Launches New Women Initiative
CFP® Board In The News The CFP Board has unveiled Accelerate & WIN, a powerful new initiative designed to fast-track the growth, leadership, and impact of women in the financial planning profession. Despite making up only 24% of CFP® professionals, women bring essential perspectives and strengths to a field that increasingly values diversity, flexibility, and…
Supply and Demand
Course: Fundamentals of Financial PlanningLesson 2: Economic Concepts and Consumer Protection Laws Student Question: I missed the below question because I thought number 2 was false. Wouldn’t price and demand move in a correlated way? The more the demand the higher the price? Which of the following statements concerning supply and/or demand is/are true? Thanks.…
Bond Price and Yield Movement
An investor purchases a 10-year corporate bond with a 5% coupon rate at par value. One year later, market interest rates increase to 6%. Which of the following statements is correct regarding the bond’s price and yield? The bond’s price will decrease, and its yield will increase. The bond’s price will increase, and its yield…
Tariffs, Economic Boom or Bust?
Good to Know Consider radioactive fissionable material; it’s beneficial when used to generate electrical power in a reactor but has the potential to create mass extinction in a nuclear war. The author respectfully suggests that – similarly – tariffs can propel our economy to new heights or smother our economic growth. We’ll turn over both sides of…
Duties of a Planner
Course: Fundamentals of Financial PlanningLesson 9: CFP Board Regulatory Requirements Student Question: I have a query regarding one of the questions on the review, shared below. Based on the answer, they are not considering opening a custodial account as providing Financial ADVICE otherwise the first response would also be required (manage conflict of interest). Why…
Municipal Bond Tax Equivalent Yield
John, a high-income investor in the 35% federal tax bracket, is considering purchasing a tax-free municipal bond with a yield of 3.5%. He is also evaluating a taxable corporate bond with a yield of 5.0%. Which of the following statements is correct regarding the tax-equivalent yield of the municipal bond? The tax-equivalent yield of the…
CFP Board Releases AI Guidance
CFP® Board Updates The CFP Board has released the Generative AI Ethics Guide: A Checklist for Upholding the Code and Standards to assist CFP® professionals in ethically integrating generative AI into their practices. The guide provides practical steps to address key concerns such as data privacy, accuracy, and bias, ensuring that AI enhances rather than compromises…
Crummey Powers
Insurance PlanningLesson 16: The Irrevocable Life Insurance Trust Student Question: Must Crummey powers always be in effect to apply the annual gift tax exclusion in order to transfer to an irrevocable trust? Or is it the case that as long as it was done once, will all transfers be eligible for the annual gift tax exclusion? Instructor…
Common versus Preferred Stock
Michael is evaluating two different types of stocks for his investment portfolio: common stock and preferred stock. He wants to invest in a security that provides regular income while still offering some potential for appreciation. Which of the following statements best describes the key differences between common and preferred stock? Common stockholders receive fixed dividends,…